Kogan.com is taking on the big banks with its own home loans
Kogan.com is taking aim at the banking sector with plans to offer home loans to its 1.3 million customers.
The pure-play online retailer has closed a deal with Adelaide Bank and Pepper Group to create Kogan Money.
In early trade, Kogan.com shares were up more than 2 per cent to an intraday high of $7.16.
The stock has gained 50 per cent since the start of August — valuing the company at $650 million — though it’s still down from a one-year high of $10.
The interest rate on offer hasn’t yet been announced but the general market trend is higher. Westpac last week became the first big four bank to increase its home loan rates.
The company says Adelaide Bank will create “competitively priced” prime home loans and Pepper Group will put together specialist or non-conforming loans.
Kogan Money is the latest to be added to the company’s portfolio offering.
In June, Kogan.com signed a supply and logistics agreements which allow it to enter the Australian Whitegoods and Built-In Kitchen Appliance Market with its own range of exclusive brand price-competitive products.
The company has Kogan Retail, Kogan Marketplace, Kogan Mobile, Kogan Internet, Kogan Insurance, Kogan Health and Kogan Travel.
David Shafer, Executive Director of Kogan.com, says the partnerships with Adelaide Bank and Pepper to launch Kogan Money Home Loans will help homeowners.
“Adelaide Bank has a long history of partnering with innovative brands and businesses that bring greater choice and diversity to consumers,” he says.
“Pepper is the leader in alternative lending in Australia and, since 2001, has been helping Aussies who may not tick all the traditional boxes for home loans to get financing.
“With well over a million active customers, Kogan.com is proud to be able to form partnerships like these that form a genuine win-win-win for both Adelaide Bank and Pepper, for Kogan’s shareholders, and most importantly for Kogan.com customers.”
Kogan.com last month posted a 277% rise in full year profit to $14.11 million, up more than $10 million from last year’s $3.74 million, driven by the pure play online retailer’s portfolio strategy.
The result came as revenue jumped by $122.79 million or 42.4% to $412.31 million.
The company’s active customer base is now 1,388,000, up by 433,000 or 45.3%.